two tiered • Promotion: unusual and creative‚ targeting business commuters • Personnel: selective in hiring; cross-trained; shared rewards through above-average pay and part-ownership • Culture: a reflection of Kelleher—lighthearted‚ fun-loving‚ off-the-wall yet serious about teamwork and productivity Question 2. How significant is the 10 to 15 minutes turnaround time of Southwest’s aircraft in terms of savings in investment and utilization of its aircraft compared to competitors? The turnaround
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consecutive year.[10] Southwest Airlines was originally incorporated to serve three cities in Texas as Air Southwest on March 15‚ 1967‚ by Rollin King and Herb Kelleher. According to frequently-cited story‚ King described the concept to Kelleher over dinner by drawing on a paper napkin a triangle symboliziSouthwest Airlines founder Herb Kelleher studied California-based Pacific Southwest Airlines extensively and used many of the airline ’s ideas to form the corporate culture at Southwest‚ and even
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Southwest Airlines Case Summary Southwest Airlines was originally named Air Southwest. It was started on March 15‚ 1967‚ by Rollin King and Herb Kelleher. Southwest Airlines is an American low fare airline based in Dallas‚ Texas. It is also the largest airline in the United States by number of passengers carried domestically in a year and the third largest airline in the world by number of passengers carried. Southwest is also one the most profitable airlines in the world posting a profit
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Southwest Airlines Organizational Structure & Culture Southwest Airlines began in concept in 1967 and took its first flights in 1971 connecting three underserved metros in Texas: Houston‚ San Antonio‚ and Dallas. Founding members Rollin King and Herb Kelleher pursued a strategy that focused mainly on cost-leadership (goal to make flight less expensive than driving between destination points) and niche strategies (business and pleasure fliers with simple itineraries and short trips) while also offering
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they made arguments to try and pass the act. One of the arguments was that in the west the Indians would have more resources and a better way of living. The southerners did not seem to care that the lands in the west were already occupied (Hood‚ Kelleher‚ and Larkin). Some of the Indians were bribed from their lands. Other were threatened to be removed (Brill 38). To get the Indians to leave‚ the Americans made cruel laws. They wanted the Indians to become so miserable they would leave (Aaseng
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uth-West AirlineA07-05-0006 Southwest Airlines 2005 You are now free to move about the country.™ In 2005‚ Southwest Airlines (Southwest)‚ the once-scrappy underdog in the U.S. airline industry‚ carried more domestic passengers than any other U.S. airline. The company‚ unlike all of its major competitors‚ had been consistently profitable for decades and had weathered recessions‚ energy crises‚ and the September 11 terrorist attacks. In recent years‚ Southwest had become more aggressive with its
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Those activities have used the third rule. Southwest hires new employees very rigorously. For this reason‚ the efficiency is improved considerably. This also meets the customer needs (First rule). CEO Herb Kelleher makes employees have the highest income with low employee turnover in the industry. Kelleher claimed:“ If they’re happy‚ satisfied‚ dedicated and energetic‚ they’ll take real good care of the customers.” That means customer needs can be respond better‚ which applies the first rule ( Magretta
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Case #20 – Southwest Airlines Company History 1966 Rollin King approached Herb Kelleher’s law office with plan to start low-cost/lowfare airline Ran into legal problems‚ rival airlines in Texas did everything they could to block new airline Herb Kelleher was determined to start up airline 1971 – Lamar Muse Southwest CEO‚ background in industry to get it up and starting Raised $7 million in capital and private investors to purchase planes and equipment Flights started between Dallas
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established because of the type of motivational strategies that Southwest Airlines uses to keep its employees motivated. Background Southwest Airlines was started in 1967‚ but at that time‚ it was under the name Air Southwest. Rollin King and Herb Kelleher‚ co-founders of Southwest Airlines‚ decided to form the airline because they wanted to provide a low cost‚ no frills type of air travel service.
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political and regulatory challenges including the Wright Amendment‚ which prohibited the carrier from offering direct service into Love Field from any state other than Texas and its four neighboring states. Under the leadership of co-founder and CEO Herb Kelleher‚ Southwest used these challenges to galvanize their employees‚ ultimately building a highly successful business with a uniquely committed workforce. By 1994‚ the airline’s success had spawned many smaller imitators such as Kiwi and Reno Air.
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